J. MILLARD TAWES, Governor                        845

Part 4

Liability of Parties
3—401. Signature.

(1)  No person is liable on an instrument unless his signature ap-
pears thereon.

(2)  A signature is made by use of any name, including any trade
or assumed name, upon an instrument, or by any word or mark used
in lieu of a written signature.

3—402. Signature in Ambiguous Capacity.

Unless the instrument clearly indicates that a signature is made
in some other capacity it is an indorsement.

3—403. Signature by Authorized Representative.

(1)  A signature may be made by an agent or other representative,
and his authority to make it may be established as in other cases of
representation. No particular form of appointment is necessary to
establish such authority.

(2)  An authorized representative who signs his own name to an
instrument

(a)  is personally obligated if the instrument neither names the
person represented nor shows that the representative signed in a
representative capacity;

(b)  except as otherwise established between the immediate parties,
is personally obligated if the instrument names the person repre-
sented but does not show that the representative signed in a repre-
sentative capacity, or if the instrument does not name the person
represented but does show that the representative signed in a rep-
resentative capacity.

(3)  Except as otherwise established the name of an organization
preceded or followed by the name and office of an authorized indi-
vidual is a signature made in a representative capacity.

3—404. Unauthorized Signatures.

(1)  Any unauthorized signature is wholly inoperative as that of
the person whose name is signed unless he ratifies it or is precluded
from denying it; but it operates as the signature of the unauthorized
signer in favor of any person who in good faith pays the instrument
or takes it for value.

(2)  Any unauthorized signature may be ratified for all purposes
of this Sub-title. Such ratification does not of itself affect any rights
of the person ratifying against the actual signer.

3—405. Impostors; Signature in Name of Payee.

(1) An indorsement by any person in the name of a named payee
is effective if

(a) an impostor by use of the mails or otherwise has induced the
maker or drawer to issue the instrument to him or his confederate
in the name of the payee; or